1. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection This presentation is written for you as a professional financial adviser. Please do not show this to your customers. AXA Business Protection Business Protection Underwriting

2. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Topics to cover… 1.AXA Underwriting Philosophy 2.Underwriting Options 3.Non Medical limits 4.Tele-underwriting 5.Underwriting Support 6.What is Financial Underwriting 7.Types of Financial Evidence 8.What we need

3. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting We aim to offer the best possible terms available to each customer and our approach is inclusive not exclusive We aim to do this quickly and efficiently and without collecting extensive medical evidence. Our philosophy To achieve this our Underwriters use their years of skills and experience to assess cases.

4. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Competitive Underwriting Decisions on: Applicants with high Body Mass Index (BMI) Applicants who Smoke Mild Asthmatics Mild Depression Service Delivery Large Cases Tele-underwriting Minimum additional evidence to assess risk Underwriting Availability (Telephone and Email) Where we excel…

5. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Traditional Underwriting Tele-underwriting Point of Sale Underwriting Paper Applications Electronic Applications (online & e-Connected) Options

6. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Point of Sale Underwriting By submitting business electronically with our online Point of Sale system or e-Connected CD-ROM you can take advantage of Electronic Underwriting Benefits: Dynamic questions Intuitive software Faster processing Higher acceptance rates Options

7. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Radical revision of automatic medical evidence limits launched in November 2007 Abolished use of automatic General Practitioner’s report (GPR) for under 45’s if the sum assured < £1,000,000 Where we do require auto evidence on the under 45s we will use Nurse Screenings rather than GPRs. Why? Little point in getting GPR on young clean lives also average turn around return on Screenings is 16 days while average turn around on GP reports is 27 days. To compensate for these higher GPR and medical limits the requirement for blood testing has been lowered from £3.5m to £1.5m. Removed requirement for Resting ECGs for Life. Life – Medical Limits

8. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting New Non Medical Limits When is a GPR required? When is a Medical needed? Life Age (NB)AXAL&GNU Age (NB)AXAL&GNU Under 30 £1,500,001£600,001£750,001 Under 30 £1,500,001£1,000,001 31-35 £1,500,001£600,001£750,001 31-35 £1,500,001£1,000,001 36-40 £1,500,001£400,001£600,001 36-40 £1,500,001£1,000,001 41-45 £1,000,000£350,001£500,001 41-45 £1,000,001£750,001 46-50 £300,000£300,001£400,001 46-50 £1,000,001£750,001 51-55 £100,000£200,001 51-55 £1,000,001£500,001 56-60 £100,000£150,001 56-60 £1,000,001£350,001 61-65 £35,000£75,001 61-65 £500,001£200,001

9. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Radical revision of automatic medical evidence limits Abolished use of automatic GPR for under 45’s if the sum assured < £1,000,000. Where we do require evidence on the under 45s we will use instead Nurse Screenings rather than GPRs. Why? Little point in getting GPR on young clean lives also average turn around return on Screenings is 16 days while average turn around on GP reports is 27 days. Addition of more focused age banding introducing 5 year age bands in the 40s & 50s age groups. Critical Illness – Medical Limits

10. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting New Non Medical Limits When is a GPR required? When is a Medical needed? Life Age (NB)AXAL&G NU Age (NB)AXAL&GNU Under 30 £1,000,001£400,001 Under 30 £750,001 N.O. 31-35 £1,000,001£300,001£350,001 31-35 £600,001£750,001N.O. 36-40 £1,000,001£250,001£300,001 36-40 £600,001£750,001N.O. 41-45 £1,000,001£200,001 41-45 £500,001£400,001N.O. 46-50 £250,001£125,001£150,001 46-50 £500,001£400,001N.O. 51-55 £100,000£75,001£100,001 51-55 £400,001£200,001N.O. 56-60 £75,001 £100,001 56-60 £350,001£150,001£250,001 61-65 £0 £50,001 61-65 £300,001£50,001£150,001

11. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting What is Tele-underwriting Big T: Capture application details over the phone Recorded phone call Can be scripted/use data capture with nurses or U/W Immediate acceptance Little T: Use phone to capture additional/missing information Recorded phone call

12. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Step 1 Short app completed (paper/electronic) Step 2 Customer contacted Step 3 Customer interview using AURA Step 4 Acceptance/Referral Our Tele-underwriting model

13. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Tele-underwriting statistics Immediate acceptance: 25% Acceptance without the need for further evidence: 75-80% Underwriting decisions: 80% ordinary rates Decline: Less than 2% of customers

14. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Increased disclosure and quality of disclosure: Recreational drug abuse Alcohol Smoking Back problems Mental health Tele-underwriting statistics

15. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting In the UK: Industry declines 25% of all CI claims* Nearly half of this is due to non disclosure** *Source: Swiss Re Term and Health Watch – 2007 **Source: Swiss Re Claims Watch - 2007 Current non disclosure rate at claims stage for Tele-underwriting at AXA is 0% Market Leading Tele-underwriting statistics

16. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Tele-underwriting – customer benefits Relevant questions Less embarrassment Less time in sales process

17. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Tele-underwriting – your benefits Can concentrate on sales Reduction in paperwork Disclosure risk passed to AXA

18. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Pre-application enquiry – Medical and financial requirements. Ring fenced service – Key contacts (case ownership) Introductory call to IFA with underwriting requirements and manage expectations Proactive pipeline management – Regular progress updates Call to IFA with final decision Dedicated underwriting support

19. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Definition: Assessing whether the individual applicant can justify the proposed sum assured Objective of Financial Underwriting: Establish Insurable Interest Reasonable contract for cover required Reasonable Sum Assured/Term Most importantly ‘ does the case make sense’ What is financial underwriting?

20. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Live Cover - financial limits Business Cover Business Financial Questionnaire £1,000,001 Reports & Accounts £5,000,001 Copy of Loan Offer for Loan Protection £2,000,001

21. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Critical Illness Cover - financial limits Business Cover Business Financial Questionnaire £500,001 Reports & Accounts £1,000,001 Copy of Loan Offer for Loan Protection £750,001

22. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting There are various avenues in which a case can be financially assessed and these include: Financial Questionnaire 3 years audited company accounts Copy of loan agreement Business projections/plans CV’s Independent valuations Existing Cover/Jumbo Limits Types of financial evidence

23. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting We offer a range of Business Protection covers including: Key Person Protection – Protects against the loss of an employee who makes a significant contribution to business success. Partner / Director Share Protection - Provides funds for the remaining owners to buy the shares of a deceased partner or shareholder. Business Loan Protection – Can help protect business loans. Most businesses need to obtain finance as and when it’s required. If anything happened to jeopardize a company’s existing loans or its ability to secure new funds, it could seriously effect profitability and growth. Executive Income Protection – It protects them against loss of income. The cover is more comprehensive than individual income protection. Types of cover

24. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Purpose: Offset the financial loss following the death or long term disability of a key individual Financial loss may be influenced by: A fall in profitability Withdrawal of investment Monies The added cost of Recruiting/Training a replacement Key Person Protection

25. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting The 2 most common ways that this can be calculated are: Important: The amount offered must be attributable to the individual Underwriting Key Person Protection Multiple of salary calculation For Life Cover: Salary × maximum of 10 For Critical Illness Cover: Salary × between 5-7 Loss of profit calculation Either 5 x average net profit (3 years) Or 2 x average gross profit (3 years)

26. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Purpose: Enables Partners to purchase deceased share of business without compromising the deceased dependents Basis of policy: Single life policies on own life should be effected: Policy should be written in Trust, Double or single option agreement Partner/Director Share Protection

27. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection The method we use to value the company is: Quoted Companies: The company’s accountant can supply an estimate of company’s value. This is relatively simple for tangible assets, more difficult for intangible assets such as goodwill Unquoted Companies: Copies of company accounts can be obtained from Companies House for as little as £1 www.companieshouse.gov.uk/ Business Protection Underwriting Underwriting Share Protection No. of shares x quoted price = level of cover Net asset value + (multiple of net profit) = level of cover

28. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Purpose: Effected to provide protection in connection with a loan in event of a Key Person’s death Underwriting: Generally a copy of the loan offer/agreement will suffice Cover must not exceed amount of loan or term of loan Other considerations: Lenders reputation Additional evidence may be required Business Loan Protection

29. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Purpose: To provide a regular monthly benefit to support a covered employee who is unable to work due to illness or injury Underwriting: Benefit will be 75% of persons earnings Maximum benefit is £11,000 per month Evidence required: Business Protection Questionnaire,P60’s, 3 months payslips, reports and accounts Executive Income Protection Pension and National Insurance Contributions of £2,500 per month can be included on top.

30. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Your client is Male, 48 years old, a managing director of Sapphire Group limited. The business supplies chemicals to the brewery and catering industries. Have been in business for 4 years. His remuneration for the last 3 years has been £ 55k, £ 59k and £ 59k. Business accounts reveal this picture: Underwriting Key Person Protection - Case study… The company has applied for £ 1 million key person cover on the life of the sales director - the company estimates he contributes 33% to company profits ’. He is also a major shareholder of the company. The purpose of the cover is to cover the potential loss in profits. £490,000£1.3 million£3.3 million2006 -£21,000 (loss)£1.2 million£3.4 million2005 £328,000£1.3 million£3.4 million2004 Net ProfitGross ProfitTurnover

31. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Underwriting Key Person Protection - Case study… Questions … 1.Can you calculate the key person sum assured? 2.Who will own the policy? And why? 3.Who will pay the premiums? 4.What criteria would the business have to satisfy to obtain tax relief on contributions? Explain? 5.Assuming the business cannot claim tax relief on the contributions, what will happen to the sum assured, should a claim arise. 6.What advice would you give regarding how the benefits might be treated by HMRC

32. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Your client is Male, 48 years old, a managing director of Sapphire Group limited. The company supply chemicals to the brewery and catering industries. Have been in business for 4 years ago and employs 33 staff, has a 49% shareholding in the business. His business partner has a 51% share in the business. Business accounts reveal this picture: Underwriting Share Protection - Case study… The directors have valued the company at £ 2.8 million Accounts received confirming figures from FQ and also that the net asset value of company was £ 500k. £490,000£1.3 million£3.3 million2006 -£21,000 (loss)£1.2 million£3.4 million2005 £328,000£1.3 million£3.4 million2004 Net ProfitGross ProfitTurnover

33. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Underwriting Share Protection - Case study… Questions … 1.Can you calculate the sums assured required for shareholder protection for the two directors? 2.What is the most flexible way in which shareholder protection can be arranged and why? 3.What should you check to ensure the shareholder arrangement is suitable for the business? 4.What additional documentation will be required to go with the trust forms? 5.Who pays the premiums? What are the tax implications? 6.What does ‘ adjustment of premiums ’ mean for the shareholders? 7.What happens after a claim has been made to the shares?

34. This presentation is directed at professional financial advisers only and should not be distributed to or relied upon by retail customers. AXA Protection Account Business Protection Business Protection Underwriting Questions and further information… Any Questions? For further information Read our: AXA Protection Account - Business Protection Guide Quick Reference FAQ Or visit www.axa.co.uk/advisers/protection